Goldman's Anti-Taper Muppet-Baiting Presentation

With stocks experiencing their best 3-day run in six months, Goldman Sachs is quick to prepare the "use the recent downdraft to build toward their strategic allocation to equities" meme. In 16 pages of bright-and-breezy charts and commentary, Goldman interprets the Fed's (dovish) commentary, explains the dovish implications to buy stocks and risky debt, and throws cold-water on the fears of China. It appears we have nothing to fear but fear itself (oh, and a global marketplace experiencing near-crisis-level volatility and deleveraging) because it's all Goldilocks from here - as good is great, bad is good, and no news is absolutely bullish. Contrast this bonds bad, stocks good perspective with Jeff Gundlach's dismissal of the great rotation meme earlier.

I've been wrong before, and before, and before again. But I think PMs are crashing for a very specific reason and I don't think the time line is very long for us knowing why. Something is rotten in Denmark.

It's like the bus on Speed. Slow down below 50mph and the bomb goes off. You know eventually you run out of gas, the bus drops below 50mph, and the bomb goes off. But you're not going to slow down the bus deliberately.

Luckily when they come to confiscate your gold it won't be there for them. I was a witness to your boating accident, a very tragic event. My sworn statement will be at least as valid as anything coming out of Holder's mouth.

But one thing I can't stand is bullshit investing advice. And ZeroHedge pushes it like there's no tomorrow. It makes more sense to be stacking cash than precious metals at this point. Deflation will strike first, and only then will the hyperinflation happen.

"Deflation will strike first, and only then will the hyperinflation happen."

Ben printed more money in the last few years than America incurred in total debt during its entire history -- to avoid deflation. He bet the farm that deflation will not happen. If it happens, no one knows what's next and it won't play out in an orderly fashion.

As with every Muppet fuckathon they will drive the price of anything the muppets hold to the point they capitulate. Muppets hoarding gold, drive the value down until the pain makes them sell, then buy all they held at discount prices.

The muppets will buy stocks or real estate, only to see them crater in value when interest rates skyrocket. The goal is always to get the muppet to hold the bag.

When the things they hold drop, they'll watch the gold they held a short time ago skyrocket.

The Muppets will cry and Blankfein will thank them for their generosity like the sociopath he is.

Asia, China that is, is liquidating. Just look at the gold price. Japan/China both are losing control of their markets, more so bonds (with China assisting Japan's volatility). The world, Wall Street and yes Goldman will get in the neck. The three way dance with death: Cronies, HFTs and central banks.

China is liquidating gold. Venezuela is liquidating oil. Argentina is liquidating. Not even South Africa looks good here. You may do with mind whatever you like...do not lose it though. I prefer forgetting myself.

On a liquidity crunch, possible but not a certainty. What I am saying is that China appears to be liquidating (all assets). The gold sell is too severe, and the USD has NOT shown to be hyper bid (gold selling). I'm looking it at a deflationary trade from China (bank crisis/debt write-downs), I don't even think about US markets anymore. I wouldn't short them on Fed still printing large into Wall Street. So for me it;s all Asia. They melt we melt.

All of you PM trolls, I want you to know something and I want you to understand it well. Even if gold and silver drop by 50% from current prices, I will still have doubled on the stack. Remember, I sold a lot at the top in silver and I am not leveraged. I will remember every single one of you. What I am going to do to you in the future is going to hurt SO bad you will wish it was only a 12 inch BBC dildo up your ass because from what I have determined from reading this site for as long as I have is that most of you are hopelessly in debt and are nothing more than gamblers hoping to bail your ass out. Your interest rates are rising.....

Thank you EB. Some Asshole told me that I am capable of being a respectable individual through writing. The audience is always the question. I know that I am capable of more than this and I enjoy trying to do that on my blog because it just flows better that way. The reality is that I can not be pissed off everyday and write something that anyone cares to read. It's just like a dilution of share value if I overblog. I really don't want that for the meme.

There are far too many good writers on ZH to ignore. TruthInSunshine's ZH post garnered a lot of hits including from an interesting site Finland for several days. You folks can do the same if you want to.

I know at least a few people care what I say and I thank you all for the support so far on developing boating accident news. I suppose it is a fairly representative overview of my redneck tendencies so far. I am sure there is a limited audience for what I write, but there are multiple limited audiences amongst the ZH crowd who write extremely well and make great posts which are forgotten by the reader, but not the computer, only 24 hours later.

Perhaps I am approaching the site the wrong way or should approach in two ways? Open writing and a "ZH QUOTABLE" menu tab? I have so much respect for some of the shit that gets said here that it needs to be saved if not for who said but why it was said. Fuck the NSA, we will say it.

THAT is bullish for gold..and silver. "Americans with lots of cash." unfortunately right now "most of that cash is still in the wrong place." could yields truly spike higher here in the USA? if the past six weeks isn't a wake up call i don't know what is. i will be watching Japan closely.

Maybe, age old bond equation on yield v's devaluation. China may dump the 10 and buy small on the long end. They did this in 2009, i think also 2010. They could go harder this time. Why hold hold devalued bonds? That would be freaking out bond managers at the moment.

Ok, so China does this they then buy gold cheap (after liquidation) as the hedge. I dunno...hard to say. Something is up though.

I recall that in 1994 they had a functioning economy. Lower rates, GDP up. Raise rates GDP down. In 1994 they raised rates in response to an economy that was ramping up. Likewise inflation. Lilewise employment.

I love the legal notice at the bottom. "This material may not, without Goldman Sachs' prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed toany person that is not an employee, officer, director, or authorized agent of the recipient."